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“DfID’s programme in Malawi is being reviewed as part of the global review of DfID’s bilateral aid programmes. The outcome of this will inform the UK Government’s future spending plans, to be agreed in the autumn,” said Barbara Hewitt, DfID press officer in an e-mailed response from London on Tuesday.

The review is in response to the new British coalition government which last month announced budget spending cuts and launched an emergency package of higher taxation aimed at slashing a huge public deficit, amid intense concern about sky-high debt levels in Europe.

Britain supports Malawi with £75 million per annum focused on three areas: governance, including key institutions like Parliament, the Anti-Corruption Bureau, as well as increased access to justice and elections; Growth and resilience, including agriculture, private sector (mining, financial) services and human development, which includes, health, education, HIV and Aids, water and sanitation.

Asked whether the review would result in aid reduction to Malawi in future and possible staffing reduction in the Malawi office, Hewitt said: “We will be able to discuss the future of DfID’s work in Malawi at that time. In the meantime, DfID is continuing to implement its programme.”

She, however, emphasised the UK’s commitment on aid spending, saying that the international development budget is “ring-fenced” and “we won’t balance the UK’s budget on the backs of the world’s poorest people.”

“The UK remains firmly committed to spending 0.7 percent of national income (GNI) by 2013. This aid commitment is both morally right and in the UK’s national interest” she said.

Finance Minister Ken Kandodo on Wednesday said that even if Britain decides to reduce the volume of aid to Malawi, “I believe it will be a gradual process to allow us to cope with the effects.”

“I don’t really think that any reductions would be huge because Malawi still has a successful programme running with the IMF, and we have good relations with the Conservative government because we have worked with them before,” Kandodo said.

In March this year, Britain cut its budget support to Malawi from £22 million to £19 million after government decided to buy a presidential jet for President Bingu wa Mutharika.

The arrest and conviction of Steve Monjeza and Tiwonge Chimbalanga, a gay couple, motivated some British MPs to call for aid suspension to Malawi accusing the administration of not respecting minority rights.

However, President Mutharika pardoned the gay couple after a meeting with UN secretary general Ban Ki Moon at the New State House in Lilongwe.